Should I Sell My Home During the Economic Recovery or Wait?

If 2020 has taught us anything, it’s that no matter how meticulously we plan, there will always be a possibility that things will go awry. The pandemic continues to rage on, the state of the economy is still a nail-biter, and the social divide isn’t getting any better. People have pretty much tossed their plans out the window for 2021 because we just don’t know how the year will pan out. 

buying a home during economic recovery

When it comes to selling your home during these challenging times, we don’t always have a choice. However, if you like to stay up to date with the goings-on in the real estate market, you know that it’s a strong seller’s market. With that in mind, you may be toying with the idea of putting your house up for sale but are afraid to because of the economic uncertainty. If so, perhaps these insights from top agents will make your choice easier.

Eager to Overprice

The majority of the country is experiencing a strong seller’s market, meaning there are too many buyers and not enough houses available. If you put your house on the market now, the chances of getting an offer is very much in your favor. However, you must resist the urge to list your house too high because when the house is appraised by the buyer’s lender, the deal could fall through.

When you list at a fair price, you’ll receive offers, but you could also receive multiple offers or offers above asking. Either way, you could get more than you are asking! Cha-ching!

home with outdoor living space

Demand for Housing Declines with Business Closures

There are many things that play a role in where we decide to move. People look at a neighborhood’s crime rate, the school system, recreational activities and places where there are plenty of job opportunities and shopping venues. Unfortunately, COVID-19 has caused 140,104 businesses to close temporarily –  97,500 of those businesses have closed for good.

If your home is in an area that has mass business closures, you might have a challenge ahead of you. Should you decide to wait until the economy recovers a bit more, businesses could reopen (or be replaced) and the demand is likely to pick back up. 

However, on the other hand, if you have to sell, you do have the option of listing your house lower than others in the area or selling to a home-buying company.

If you’re trying to sell a house in a community that’s experienced mass business closures, the likelihood of someone buying it may lower than before the pandemic. Choosing to wait until the economy recovers can be tricky because you can’t really predict if those businesses that have closed will reopen or be replaced. 

What will your finances look like in the future?

It’s important to consider your financial future when you’re thinking about selling during an economic decline. You need to look at your home’s equity and determine whether or not you’ll get anything from the sale to make it worth it. If you need to buy a new house, will that sale give you enough for a sizable down payment? And when you do get that new house, will the new mortgage rate be higher than your previous mortgage? 

It’s not just the sale of the house you need to consider. You need to think about your job stability or opportunities, what the commute will be like, and will you have the same salary at this new job. You need to look at the cost of living in the new area, what the taxes are like and so on. These factors need to be considered because it will affect your budget in the long run.

There are so many things that you have to take into consideration before putting your house on the market. But, if you need to sell as soon as possible, ask your real estate agent for tips on how to get your house ready to sell.

Should I Sell My Home During the Economic Recovery or Wait

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